Fuel prices climb end-August amid global supply concerns, regional tensions

MANILA, Philippines — Oil companies are set to implement a fuel price hike of as much as P0.70 per liter on Tuesday, August 25, due to rising demand and dwindling supply in the United States.

Prices of gasoline will increase by P0.70 per liter, diesel by P0.50 per liter, and kerosene by P0.30 per liter.

Shell Pilipinas, CleanFuel, Seaoil, PetroGazz and Caltex announced the upward price adjustments in separate advisories on Monday, August 25.

The Department of Energy’s Oil Industry Management Bureau (DOE-OIMB) said fuel prices are likely to continue rising in the coming months in anticipation of higher demand.

It added that persistent tensions between Iran and Israel remain a factor driving oil price volatility, with fears of potential supply disruptions weighing on the global market.

Meanwhile, the United States’ failed attempt to broker a ceasefire between Russia and Ukraine has further clouded peace talks between the two countries, adding to the uncertainty surrounding global oil supply.

With this week's price hike, gasoline is now at its costliest point so far this year, with prices up by a net P12.10 per liter from end-2024 levels. Meanwhile, diesel has posted a year-to-date increase of P12.45 per liter, while kerosene is up by P2.05 per liter.

Last week, oil firms implemented mixed fuel price adjustments, with gasoline increased by P0.60 per liter and diesel and kerosene down by P0.80 per liter and P0.90 per liter, respectively.